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Homebuying: Now and Then

November 28, 2013

There’s no argument that things have change since the 1980s. Society, laws, and of course… the price of living.  In fact, when looking at the difference between the 80s and today,  a fluctuation in prices sticks out to me the most. In 1989 a gallon of gas was $1.02. Compare this to 2012 where the average price of gas is $3.37 per gallon. This is why you may be surprised in the differences in owning a home between 1989 and 2012. While the median home price has gone up ($94,000 in 1989 compared to $176,660), the mortgage rate has actually decreased. In 1989 the Mortgage Rate was 10%, while it was only 3.4% in 2012. While the median home increase may seem large, there are several factors we must take into account. For instance, homes in 2012 tend to have larger rooms and much more square footage overall than homes in 1989.  This may be a contributor to the price difference. Another interesting difference is that in the monthly Principal and Interest (P&I) payment between 1989 and 2012.  While the median home range may be higher in 2012, the significantly lower mortgage rate allows homeowners to have a lower monthly payment. While homeowners were paying an average of $825 per month on their mortgage in 1989, homeowners in 2012 only paid an average payment of $626 per month despite the fact that there homes are valued about $82,600 dollars more!!! What does this mean to you?? Now is a better time than ever to get a more valuable, LARGER, and up to date home while paying less!!! Give us a call today and we’ll go over the options that work best for you and your family.

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